Media group Reach PLC (LSE:RCH) reported a drop in quarter three revenues with trading distorted by the impact of the passing of HM The Queen which benefited circulation but significantly reduced advertising due to the blackout during the period of national mourning.
For the quarter, group revenues fell 1.9%, which included a 4.1% decline in September.
The company, which publishes The Mirror, The Daily Express and OK!, said performance in July and August was more likely to be indicative of underlying performance with print revenues down 2.8% and digital revenues up 5.9%.
The company also announced that its chief financial officer Simon Fuller would step down at the end of the year by mutual agreement, and would be replaced by ITV group director of finance Darren Fisher.
For the quarter as a whole digital revenues rose 1.1%, including an 8.1% fall in September which reflected a reduction in advertising spending following the passing of HM The Queen.
Print revenues for the quarter fell 2.9% but circulation revenues increased by 2.0% following recent price increases, with volumes responding as anticipated.
Circulation in September was up 4.3%, reflecting a material one-off uplift, with The Express and The Mirror growing aggregate volumes by around 30% on the day following the Queen's passing and the day after the funeral.
However, this upside was more than offset by a reduction in print advertising, which was down by 17.0% in July and August, but 32.2% in September.
Given all the above, the estimated overall net effect (print and digital) on trading for September was around a 5% reduction in revenue, the group said.
The group said newsprint costs have stabilised during the period and cost management actions taken during the first half are helping to offset persistent inflationary pressures.
Reach said it expects circulation revenues to be supported by increased cover prices, while advertising revenue should benefit from Black Friday, Christmas and from the football World Cup which starts in November.
Jim Mullen, chief executive, said: “The strength of our balance sheet underpins ongoing investment in the strategy, as we continue to transition to an increasing mix of higher quality digital earnings."